KUALA LUMPUR (June 22): Beginning July 1, insurance policyholders who use credit and debit cards will no longer be able to use signature to verify the payment of premiums, said Life Insurance Association of Malaysia (LIAM).

Instead, all payments of insurance premium will only accept the six-digit PIN verification, in line with the Government's policy to switch from signature-based cards to the 'PIN and PAY' system, said the association in a statement today.

"We would like to remind policyholders to use 'PIN and Pay' so that their premiums payments can be transacted successfully.

"Policyholders can also make arrangements with their insurance companies to switch to direct debit arrangements where premiums will automatically be deducted from their accounts on the scheduled deduction date," it said.

Moving away from conventional cheque or cash payments, LIAM said electronic payment (e-payment) transaction is another alternative being actively pushed by the life insurance industry — which can also be used to receive dividends and claims from insurance companies.

E-payment, it said, is a safe and convenient payment method which can improve productivity, reduce costs of doing business, and minimise the inherent risks associated with cash and cheques.

"We urge all our customers to embrace e-payments in all their mode of transactions as they are safe, efficient and reliable. Customers do not have to worry about ensuring that their premiums are paid every due date.

"They also do not need to make arrangements for third parties to assist with their premium payments and do not need to share their bank details unnecessarily and can keep this personal data secured and protected," said the association.

"We would also remind all customers with existing payment arrangement using debit card to update your new debit card number with your insurance company when you change your previous debit card to the new card with 'PIN and Pay' feature," it added.